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EasyJet relaunches package holiday business | EasyJet relaunches package holiday business |
(32 minutes later) | |
EasyJet is relaunching its package holiday business as the airline looks to fill the gap in the industry left by Thomas Cook's demise earlier this year. | EasyJet is relaunching its package holiday business as the airline looks to fill the gap in the industry left by Thomas Cook's demise earlier this year. |
About 20 million people fly with EasyJet to Europe annually but only 500,000 book accommodation through it. | About 20 million people fly with EasyJet to Europe annually but only 500,000 book accommodation through it. |
The news came as the carrier reported a 26% fall in pre-tax profits to £427m for the year to 30 September. | The news came as the carrier reported a 26% fall in pre-tax profits to £427m for the year to 30 September. |
EasyJet also said it would become the world's first major net zero carbon airline by offsetting carbon emissions. | EasyJet also said it would become the world's first major net zero carbon airline by offsetting carbon emissions. |
Chief executive Johan Lundgren told BBC Radio 4's Today programme: "This is not a long-term solution, offsetting is not perfect. | |
"I don't think it's greenwashing, everyone recognises that it works, but this is in addition to the fact that since 2000, we've reduced our carbon emissions by 30%." | |
He said that the company would take on the £25m cost and added: "That's not something we're adding on to ticket prices, which makes us one of the largest carbon emissions offsetting companies in the world." | |
'Not traditional holidays' | |
Explaining the decision to relaunch its package holidays, EasyJet said in a statement: "The total European package holidays market is worth around £61bn per year. The UK alone is a £13bn market and has grown by 6% annually. | |
"The way that customers are taking holidays is changing and we know customers want holidays with various durations and not the traditional seven and 14 nights. | "The way that customers are taking holidays is changing and we know customers want holidays with various durations and not the traditional seven and 14 nights. |
"EasyJet is excited about the opportunity to build a major player in the holidays market for a low up-front investment and with limited risk." | "EasyJet is excited about the opportunity to build a major player in the holidays market for a low up-front investment and with limited risk." |
The airline said it had conducted research which showed its customers wanted flexibility in flights and tailored holidays and it had designed its business to respond to this. | |
EasyJet's results showed that annual revenues rose 8.3% to £6.4bn, as it increased capacity, but total revenue per seat fell 1.8% to £60.81 due to "some weakness in consumer confidence". | |
Passenger numbers for the year rose 8.6% to 96.1 million. |